Global equity markets started the week on weaker note when China’s equity market opened almost 8% lower on its first trading day after a break from the festive holidays.  Markets did, however, manage to claw higher after concerns surrounding the coronavirus eased slightly. Sentiment further improved after China announced that it would be reducing the tariffs on its US imports amidst concerns that the global supply chain would be disrupted.  


In the news

  • China’s domestic equity market tumbled on its 1st day of trading post the Chinese New Year holidays, before improving marginally towards the end of the week.
    • The broader Shanghai Composite Index ended the week 3.2% lower in MYR terms as concerns surrounding the coronavirus outbreak continue to loom over global markets.
    • The People’s Bank of China was quick to step-in to support the market by injecting financial stimulus into the financial system. RMB 1.2 trillion was injected into the banking sector on last week.
  • Market sentiment improved after China announced that it would be reducing its import tariffs by 50% on USD 75 billion of imports from the US.  Tariff cuts are expected to start this week – on 14th February.
  • While the domestic China equity market slid lower, the China companies listed on the Stock Exchange of Hong Kong ended the week on stronger, as seen in the 5.7% gain recorded by the Hang Seng China Enterprises Index.
  • The stronger performance of the HSCEI Index also resulted in a 8.1% gain for the 0832EA (TradePlus HSCEI Daily (2x) Leveraged Tracker) last week.
  • Supply chain disruptions are expected to continue as many factories in China are anticipated to remain shut on the back of the virus concerns.
  • The US S&P500 Index continued to climb higher, with technology stocks stealing the limelight.
    • Twitter Inc saw its price soar after announcing strong number of users, and revenues. 
    • Total revenues for 2019 were reported at USD3.5 billion, and a 20% hike in YoY “monetised active daily users” to 152 million.
    • Tesla Inc also saw its share price spike to above USD900 over the week, before moving back to the USD700 level.
  • The stronger performance of the technology stocks propelled the 0830EA (TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker) 10.9% higher over the week, bringing its year-to-date returns to an impressive 26.5%.


In other economic news

  • China’s service PMI reading slips to 51.8 in January from 52.5 in December.
  • US job data exceeds expectation.
    • A total of 225,000 jobs were reportedly added, exceeding 2019’s average of 175,000.
    • Nevertheless, unemployment rates rose from 3.5% to 3.6%.  The increase was said to be due to the rise in number of job seekers moving back into the job market.
  • UK sees an improvement in its manufacturing PMI, rising from 47.5 in December to 50.0 in January. Sentiment has improved now that the country is seen to be on more stable political footing.
  • Europe’s economic health is in focus after Germany, the largest economic contributor to the bloc, reported drastic weakness in data.
    • Germany saw its manufacturing order fall by 2.1%, and
    • industrial production fell 3.5% in December, reversing the 1.2% increase in November.


What to look out for ahead?

  • The development of the coronavirus is expected to remain a headline grabber for now. 
  • Market volatility is expected to continue in the near-term, putting forth opportunities to hedge market exposure through the physically gold-backed 0828EA (TradePlus Shariah Gold Tracker), or the 0831EA (TradePlus NYSE FANG+ Daily (-1x) Inverse Tracker), and 0833EA (TradePlus HSCEI Daily (-1x) Inverse Tracker).
  • We can expect more economic data to flow out from China as it looks to release its inflation numbers, together with CPI, and PPI numbers this week.
  • The US will also be announcing its inflation numbers later this week.
  • EU finance ministers are expected to provide more clarity this month on their decision for a more “growth-friendly” fiscal policy given the growth concerns.


A look at the performance of the TradePlus ETFs, and major global indices


ETF Performance


Index Performance



Learn more about TradePlus ETFs
+(60) 12 606 8685


Disclaimer: This article has been prepared by AHAM Asset Management Berhad (“AHAM Capital”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to AHAM Capital and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of AHAM Capital. The information contained in this presentation may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this presentation has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the presentation was prepared, AHAM Capital makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions. As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising out of and/or in connection with the financial product. AHAM Capital is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessments of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers. AHAM Capital and its affiliates may act as a principal and agent in any transaction contemplated by this presentation, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities. Neither AHAM Capital nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or implied) arising out of, contained in or derived from or any omission from this presentation, except liability under statute that cannot be excluded.

Warning Statement: A Prospectus is available for the TradePlus Shariah Gold Tracker and TradePlus S&P New China Tracker, while a Master Prospectus is available for the TradePlus NYSE® FANG+TM Daily (2x) Leveraged Tracker, TradePlus NYSE® FANG+TM Daily (-1x) Inverse Tracker, TradePlus HSCEI Daily (2x) Leveraged Tracker and TradePlus HSCEI Daily (-1x) Inverse Tracker (collectively known as the “TradePlus L&I ETFs”), and investors have the right to request a copy of it. Investors are advised to read and understand the contents of the Prospectus dated 28 November 2017 and Supplementary Prospectus dated 2 July 2019 (for TradePlus Shariah Gold Tracker), and Prospectus dated 15 January 2019 and Supplementary Prospectus dated 2 July 2019 (for TradePlus S&P New China Tracker), as well as the Master Prospectus dated 26 November 2019 (for the TradePlus L&I ETFs) before investing. The Prospectus / Supplementary Prospectus / Master Prospectus have been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. An electronic copy of the Prospectus / Supplementary Prospectus / Master Prospectus can be obtained at Affin Hwang Asset Management Berhad’s website As with any forms of financial products, the financial products mentioned herein carries with them various risks. Investors are advised to consider the general and specific risks involved as stipulated in its Prospectus / Supplementary Prospectus / Master Prospectus before investing. There are also fees and charges involved when investing in these funds, and investors are advised to consider the fees and charges carefully before investing. The price of units and distribution payable, if any, may go down as well as up and past performance of the funds should not be taken as indicative of their future performance. 

Licensing Disclosure Statement & Conditions: The "S&P New China Ex A-Shares Index" is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”) and has been licensed for use by Affin Hwang Asset Management Bhd. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Affin Hwang Asset Management Bhd. TradePlus S&P New China Tracker is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P New China Ex A-Shares Index.

Licensing Disclosure Statement & Conditions: Source ICE Data Indices, LLC (“ICE Data”), is used with permission. “NYSE® FANG+™” is a service/trade mark of ICE Data Indices, LLC or its affiliates and has been licensed, along with the NYSE® FANG+™ Daily 2X Leveraged Index and NYSE® FANG+™ Daily 1x Inverse Index (“Indices”) for use by Affin Hwang Asset Management Berhad in connection with the TradePlus NYSE® FANG+™ Daily (2x) Leveraged Tracker and the TradePlus NYSE® FANG+™ Daily (-1x) Inverse Tracker (the “Product”). Neither Affin Hwang Asset Management Berhad nor the Product, as applicable, is sponsored, endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its Third Party Suppliers (“ICE Data and its Suppliers”). ICE Data and its Suppliers make no representations or warranties regarding the advisability of investing in securities generally, in the Product particularly, or the ability of the Index to track general stock market performance. ICE Data’s only relationship to Affin Hwang Asset Management Berhad (“Licensee”) is the licensing of certain trademarks and trade names and the Index or components thereof. The Index is determined, composed and calculated by ICE Data without regard to the Licensee or the Product or its holders. ICE Data has no obligation to take the needs of the Licensee or the holder of the Product into consideration in determining, composing or calculating the Index. ICE Data is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be priced, sold, purchased, or redeemed. Except for certain custom index calculation services, all information provided by ICE Data is general in nature and not tailored to the needs of Licensee or any other person, entity or group of persons. ICE Data has no obligation or liability in connection with the administration, marketing, or trading of the Product. ICE Data is not an investment advisor. Inclusion of a security within an index is not a recommendation by ICE Data to buy, sell, or hold such security, nor is it considered to be investment advice.